Stock/Securities Donations

Stock/Securities Donations

Making a donation of securities is a tax-wise way to support brain and behavior research:
A gift of appreciated securities might provide tax advantages far greater than a gift of cash. When you transfer ownership of stock held long-term (a year and a day) you may be eligible to receive a charitable deduction for their full market value of the security and incur no capital gains tax. Of course, you should consult with your tax advisor before making any gift of securities.

How to donate via stocks or securities

Answer

Here’s what we need from you:

Call 800-829-8289 or email us at [email protected] and tell us that you want to make a gift of securities.

Here’s what you need:

Name of the security

Number of shares you wish to donate

When you contact your broker, you will need to share the following information. Your broker will do the rest:

Account Name - Brain & Behavior Research Foundation

DTC number – 235

Account: RBC Capital Markets

Account number -978-20173

Tax ID Number -31-1020010

If the securities are held in an account in street name with your broker or bank

Answer

Instruct your broker or bank officer to arrange for the transfer of securities via Depository Trust Company (DTC) to Brain & Behavior Research Foundation’s account at RBC Capital Markets.

The date of gift for valuation purposes is the date the securities are actually transferred into the Brain & Behavior Research Foundation account.

If your securities are in certificate form:

Answer

Send by mail, or deliver by hand, unendorsed certificates, with a cover letter describing the asset(s) being donated and the purpose of the gift, to John Bayat at the Brain & Behavior Research Foundation at 90 Park Avenue, 16th Floor, New York, NY 10016 or [email protected].

In a separate envelope, send a signed (exactly as name appears on the certificate) stock/bond power for each asset. Do not complete any other section of the stock/bond power.

The date of gift is the date of the postmark on the envelope containing the certificate(s) or the date of delivery by hand to the representative. The IRS does not accept receipts from private carriers such as Federal Express to substantiate gift dates.

If the securities are held in a mutual fund:

Answer

Most funds will require that you send a letter, with signature guaranteed, asking that a specific number of shares or a specific dollar amount in shares, be re-registered in the name of. A copy of the letter should be sent to John Bayat at the Brain & Behavior Research Foundation at 90 Park Avenue, 16th Floor, New York, NY 10016 or [email protected]. Since mutual funds differ somewhat in their procedures, you should call your fund to verify its requirements for transfers.

The gift date for valuation purposes is the date the fund shares are re-registered in the Brain & Behavior Research Foundation’s name.

Valuation of securities:

Answer

Your gift of securities is valued at its fair market value on the date of the gift. In the case of publicly traded securities, the fair market value is the mean between the high and the low (bid and ask) prices on the date of gift. Mutual fund shares are valued using the public redemption price on the date of the gift.

IRA Charitable Rollovers

What should I know about the permanent IRA Charitable Rollover?

As part of the recently passed Protecting Americans from Tax Hikes (PATH) Act of 2015, individuals age 70½ or older can make tax-free distributions directly from their Individual Retirement Accounts (IRAs) to qualified charities, such as the Brain & Behavior Research Foundation, for up to a maximum of $100,000 per year. The Act authorized a permanent extension of the IRA Charitable Rollover. An IRA Charitable Rollover gift may fulfill part or all of your required minimum distribution. We recommend that you discuss this special tax incentive with your income tax professional for further details. For further information, please contact the Foundation at 800-829-8289.